In today’s briefing:
- Lucror Analytics – Morning Views Asia
- Minerva 3Q24: Acquisitions Keep Uncertainty High
Lucror Analytics – Morning Views Asia
- USTs were sold off across the curve yesterday. The yield on the 10Y UST increased 12 bps to 4.42%.
- Open interest rose for the fourth consecutive session on the 2Y notes contract, with traders building up bearish positions following the US presidential election.
- Traders are pricing in just over a 50% chance that officials will deliver another quarter-point rate cut in December, and are now pricing in about two US rate cuts through June 2025 (vs. almost four projected at the start of last week).
Minerva 3Q24: Acquisitions Keep Uncertainty High
- We expect the company to encounter challenges in free cash flow generation, which will pressure credit metrics and hinder post-acquisition deleveraging.
- The 2033 notes are the only ones within Minerva’s capital structure that do not trade tight to the LatAm BB and EM BB curves.
- However, we believe a better entry point for these notes may emerge based on our expectation of a weakening credit profile in the short term.
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